Latest Post

Crypto ATM business: How to start What is crypto bot trading? 

What’s the Next Crypto to Blow up: Low Risk Cryptos with best potential for 2022

If you find yourself wondering what’s the next crypto to blow up, you are not alone. Early last year, most crypto analysts and investors were calling for a 100k Bitcoin during the next crypto boom and those were the more conservative predictions.

Needless to say, when it was clear that Bitcoin was not meeting the expectations, many investors started reevaluating the thesis and shifting their focus on questions like:

  • Are we in a supercycle?
  • How will the impending inflation impact the crypto market?
  • What’s the next big cryptocurrency?
Photo by PODNAE Productions

When can we expect the next crypto boom?

Led by the experiences from 2013 and 2017, everyone was expecting a Bitcoin blow-off top in 2021. However, last year was clearly a bull market precedent as neither did Bitcoin reach the anticipated levels, nor was there a typical post bull market drop of 80%.

This led some of the investors to speculate on the possibility of a supercycle. Up to 2020, the crypto market was predominantly a retail game. However, last year brought a serious number of institutional investments into the market, which could arguably be the reason behind the current Bitcoin price. Granted, there will always be voices calling for a 20k, or even 8k Bitcoin, nevertheless, 40k seems to be a relatively solid support. Therefore, it is quite possible that the blow-off top days are behind us and that we are embarking on a crypto supercycle journey ahead.

The omnipresent talks of hyperinflation and federal rate hikes seem to be keeping a cap on another serious price rally in 2022. Combined with the pandemic consequences and the ongoing war in Ukraine, hyperinflation makes for a perfect risk-off setting. This is why we are seeing the precious metals prices and real estate market booming while stock and crypto markets are lagging behind.

It is clear that the current geo-political situation is dictating the state of the crypto market, since every time Bitcoin shows any sign of recovery, news of another rate hike pushes it back down. However, as Goldman Sachs, Wells Fargo and other major banks are slowly embracing the idea of cryptocurrency investing, we could expect some price action.

What’s the next big crypto?

Predicting a coin’s rally may be simpler than one may think. However, it does require investing time to get acquainted with the coin’s roadmap and overall trends. For example, the talks of the Polkadot’s parachain auction drove its price to an ATH last November. The anticipation of Elon Musk’s appearance on Saturday Night Live caused the price of Dogecoin to more than double in the matter of days. However, it is important to have an exit strategy beforehand as these types of rallies often end in a steep price drop. This happens because many investors trade following the “buy the rumor, sell the news” strategy.

In doing the coin’s background research, it is essential to look at its market cap in order to understand whether enough liquidity can be injected into it to make the price grow to the desired target price. For example, some of the Shiba Inu army are calling for $1 Shib. Simple market cap investigation would show that this price target is impossible as it would require Shiba’s market cap to be over 700 times that of Bitcoin’s current market cap.

It is also worth understanding if the coin keeps up with the times, as there are always more advanced alternative technologies. For instance, the technology behind Ethereum is now inferior when compared to some of the new blockchains’. However, Ethereum still has the first mover advantage which will keep it at the top as long as the team delivers on the roadmap goals.

Having said that, there are a few coins that we are keeping a close eye on due to the upcoming or ongoing events.

Ethereum

Ethereum has had two major rallies during 2021 and we may be up for another one later this year. The project’s developers have launched a mainnet shadow fork in order to start stress testing the upcoming software. The highly anticipated merge on Ethereum should make it the next cryptocurrency that will boom, however, potential delays will likely reflect negatively on its price.

Photo by Bram van Oosterhout from Pexels

Terra

Terra has seen a great rally with its price doubling over the past two months. This happened as a result of Do Kwon announcing that Terra intends to accumulate $10 billion worth of Bitcoin and use it to back UST stablecoin. This bold move could bring about a lot more interest in this algorithmic stablecoin, thus resulting in some serious Terra price action.

Solana

Given that the ability to process between 45k and 65k transactions per second makes Solana the fastest cryptocurrency on the market, it is an undervalued chain. Currently it is trading at 60% off its ATH due to its frequent outages over the past couple of months, however, it is important to keep in mind that this blockchain is still in beta. Whether Solana will reach a new ATH later this year will depend on the upcoming milestones. The first big event is the launch of Solana’s Neon layer, expected by July this year. This launch could make Solana the next cryptocurrency to explode as it should result in this chain taking over a portion of market share from EVM compatible cryptocurrencies, such as Ethereum and Avalanche.

Bitcoin

Bitcoin is a slow moving giant among the cryptocurrencies, sort of the Alpha that all cryptos tend to follow. However, the constant increase in institutional demand for Bitcoin, paired with the diminishing supply of this coin from the exchanges make for a perfect setting for a crypto that will explode at one point.  Cathy Wood, Michael Saylor, Robert Breedlove and many other giants of our time are calling Bitcoin the best hedge against fiat inflation. They are predicting its price reaching seven, perhaps even eight figures by the year 2030.

Conclusion

During a bull run the “what’s the next crypto to blow up” question is not as relevant, because when Bitcoin goes up, all of the alts follow. Technically, if you invested money before the bull run and timed your exit properly, you could make money on virtually any coin. However, the bear market is a different story. During a bear market, you need to follow the trends and get informed on the anticipated events as those are the ones typically driving a coin’s price up.